MycoTechnology plans to use US$35 million funding for mushroom protein plant

MycoTechnology, an American company that uses mushrooms to improve the taste of food and drinks, closed a US$35 million Series B round of financing with food investors worldwide.

The company plans to put a portion of this funding towards building a commercial production facility in Aurora, Colorado, to develop its product, PureTaste. PureTaste is a digestible, non-GMO, vegan mushroom protein that is low in calories, fat and carbohydrates but loaded with vitamins and minerals that cannot be found in other competitive proteins.

MycoTechnology puts the product through a 21-day sterilisation, inoculation, myceliation and drying process using mushroom and fungi roots to remove the bitter taste. The nutty/cereal tasting spray-dried protein powder, PureTaste, makes it useful for a range of consumable products including chocolate, coffee and alcohol.

The development of these proteins is a result of the company trying to combat the rising demand for protein-rich products and the fear that there will be insufficient protein resources to support the population in the future.

“Our discovery and commercialisation of PureTaste protein solves the challenges of feeding an exponentially growing population with a highly sustainable protein source but does not compromise on taste, which is the number one challenge with consumer acceptance. Proteins with high concentrations of amino acids tend to have a bitter taste, which has seriously limited the adoption of alternative proteins; however, with PureTaste Protein we have solved this challenge and the taste is great,” stated Alan Hahn, CEO and co-founder of MycoTechnology.

The Colorado-based food technology developer secured financing from Series A investors as well as new venture and strategic partners. The round was led by S2G Ventures with co-leads Bunge Ventures and Emerson Collective, and other investors included: Health For Life Capital/Seventure Partners, Middleland Capital, Tao Capital Partners, Eighteen94 Capital, Continental Grain, GreatPoint Ventures, Closed Loop Capital and Windy City.

“We are excited about this investment in MycoTechnology because not only do they make an innovative, non-animal protein source that also has a clean flavour profile, but their process is highly sustainable," said S2G Capital Managing Director Sanjeev Krishnan.

With the new production facility, MycoTechnology will have one of the most resource-efficient plants in the world which will initially be able to produce about 4000 metric tons of PureTaste per year. By using large fermentation tanks to allow PureTaste to be grown vertically, the company is reducing land use and improving sustainability, which Krishnan highlights as an important aspect driving their financial support.

“In a market environment where alternative protein sources are in high demand, MycoTechnology delivers a scalable solution for applications in countless products while benefiting both people and planet,” said James Macon of Closed Loop Capital.